Mexico city at goldenhour

Mexico Remittances November 2017

Mexico: Remittances shrink in November on U.S. election base effect

Remittances totaled USD 2.3 billion in November, a 4.7% decrease from the same month in the previous year and a marked contrast to the 19.0% surge recorded in October. The contraction was largely reflective of a very strong base effect caused by the election of Donald Trump as President of the U.S. in November 2016, which had prompted many Mexican workers in the U.S. to wire money across the border on the possibility that the forthcoming administration would implement measures that hinder remittances.

The 12-month trailing sum of remittances eased from the record-high of USD 28.6 billion in October to USD 28.5 billion in November. This represents a 6.2% increase compared to the same period of the previous year, below the 8.5% increase recorded in the 12 months up to October.

In spite of November’s figure, the 2018 outlook remains upbeat for remittances. The U.S. economy is expected to grow at a faster clip this year on the back of tax reform, upbeat manufacturing activity and a very tight labor market, which should fuel healthy remittances to Mexico. In turn, strong remittance inflows will continue to play a key role in sustaining domestic household spending in light of blistering inflation and tighter monetary conditions.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest